News

JPMorgan announced it will hire as many as 175 full-time employees in its Cleveland, Michigan mortgage operation center and as many as 125 in its Columbus, Ohio center by year-end, thanks to a successful summer in its mortgage sector. The company reported a net income of nearly $5 billion for the second quarter of 2010, which was up from both Q1 2010 and Q2 2009.

The New York State Division of Housing and Community Renewal on Wednesday awarded $848,384 to the Center for New York City Neighborhoods (CNYCN) and the New York City Department of Consumer Affairs Office of Financial Empowerment (DCA's OFE). The money has been allotted to provide free financial counseling and to expand CNYCN's call center operations for at risk homeowners, which takes calls from New York City's general information line.

New data released by the HOPE NOW Alliance Thursday shows that during the month of August, mortgage servicers completed approximately 116,000 proprietary loan modifications for homeowners and 33,000 mods under the Home Affordable Modification Program (HAMP), for a total of 149,000. The report also shows that foreclosures are continuing to increase, despite the strides made in foreclosure prevention efforts. In August, new foreclosures were initiated on 245,015 properties, while foreclosure sales were completed on 101,780.

A controversial notary bill has flown under the radar amid reports of servicers' ""robo-signers"" who reflexively shoveled foreclosure cases through the pipeline without having the documents properly notarized. The bill would require state and federal courts to recognize any notarization made by a licensed notary public in any state. Critics say it would make it harder for borrowers to contest the legality of a foreclosure on the grounds of improper documentation. The bill has passed both chambers of Congress, but President Obama says he will not sign it.

Mesa Law Group, a California firm with specialty financial services, recently announced the addition of a REST Report to its Loan Modification Preparation Program (LMPP). The new tool will aid clients in the loan modification process without the high cost of direct representation. According to Mesa Law Group, LMPP allows homeowners to organize finances and better navigate the demands of their lenders.

Mortgage interest rates dropped again this week, setting new record-lows across the board. Analysts say we have bond investors to thank for the continuing declines. Investors are expecting the Fed to begin pumping more money into the economy to reinvigorate the now lukewarm recovery, so there's been a rush to buy up mass amounts of government- and mortgage-backed debt. This, in turn, has served to drive mortgage rates lower - now at their lowest point in more than a half-century.

Wells Fargo & Co. announced this week that from December 18, 2010, through June 30, 2013, Wachovia Pick-a-Payment customers who are at-risk of default may be eligible to earn principal forgiveness by making on-time mortgage payments. The company says it has already written mortgage principals down by a total of nearly $3.4 billion for Pick-a-Payment customers. The bank will also contribute $24 million to eight states to help with customer outreach and alleviate the impact of foreclosure in local communities.

First Preston Housing Solutions, LLC, a nationwide, full-service REO marketing, management, and real estate advisory services company, has named Michele John Kelaart its new company president. Kelaart brings to the company 20 years of experience investing and managing distressed residential mortgages and REO inventories with a large multinational investment firm.

Data released by Clear Capital Thursday shows that quarter-over-quarter home prices were down 0.2 percent in September compared to the previous month's reading. It's the first time in months the company has seen national home prices slip into negative territory. Clear Capital says signs of a slowdown are apparent and likely mark an early onset of the typically weaker winter season. However, the company says home prices are still 10 percent above their 2009 lows, so the risk of carving out a new trough this year remains small.

The foreclosure paperwork gaffe at GMAC Mortgage has garnered heavy attention from the highest legal counsels in states across the country, and at least one attorney general is pressing charges. In a lawsuit filed Wednesday against GMAC Mortgage and Ally Financial, Ohio Attorney General Richard Cordray accuses the loan servicer and its agents of filing fraudulent affidavits in an attempt to mislead Ohio's courts. He is seeking a preliminary foreclosure injunction, $25,000 for every violation, and consumer restitution.